DB 430102 RO
STATE OF NEW YORK
DIVISION OF HOUSING AND COMMUNITY RENEWAL
OFFICE OF RENT ADMINISTRATION
GERTZ PLAZA
92-31 UNION HALL STREET
JAMAICA, NEW YORK 11433
----------------------------------X S.J.R. 5818
IN THE MATTER OF THE ADMINISTRATIVE ADMINISTRATIVE REVIEW
APPEAL OF DOCKET NO.: DB 430102 RO
MAXWELL KATES, INC.
C/O
KUCKER, KRAUS AND BRUH, DRO DOCKET NO.: ZCD 430022 OM
PETITIONER
----------------------------------X
ORDER AND OPINION GRANTING ADMINISTRATIVE APPEAL IN PART
AND
REMANDING PROCEEDING ON APPEAL
This order and opinion is issued pursuant to a stipulation
entered into in the Supreme Court, New York County (Justice
Fingerhood), remanding an Article 78 proceeding to the Division
of Housing and Community Renewal (DHCR) for further processing
and a new determination of the owner's administrative appeal
herein.
The Article 78 proceeding (S.J.R. 5818) was filed by the owner
against the Commissioner's prior order under Docket No. DB 430102
RO, S.J.R. 4690 (issued April 26, 1991), which affirmed the
District Rent Administrator's determination that the installation
of new gas piping at the subject premises (located at 345 East
12th Street, New York, New York) does not constitute a Major
Capital Improvement (MCI). The Commissioner's prior order noted
that the gas piping, with proper installation and maintenance, is
expected to last for the life of the building.
Upon remand, the DHCR's Engineering and Construction Unit
reviewed physical condition surveys prepared by consulting
engineers or architects for eleven different housing projects
built under the Mitchell-Lama program. These surveys indicated
that the useful life of the gas piping inside buildings is less
than the useful life of the buildings (the life expectancy of gas
piping most often cited was fifty years).
After a careful consideration of the entire evidence of record
the Commissioner is of the opinion that the administrative appeal
should be granted in part and this proceeding remanded to the
Administrator for further processing in accordance with this
order and opinion.
The record upon remit indicates that gas piping has a useful life
which is less than the life expectancy of buildings in which it
is installed. Thus, a building-wide replacement of gas piping
DB 430102 RO
should not be disqualified for MCI treatment on the basis that
gas piping is expected to last as long as the building does.
Therefore this proceeding is being remanded to the Administrator
for such further processing as is necessary. Upon remand, the
Administrator should determine (among other things) whether the
useful life of the piping replaced herein had expired, whether
the installation otherwise qualifies for MCI treatment, and
any other issues raised by the tenants.
THEREFORE, in accordance with the applicable provisions of the
Rent Stabilization Code, the Rent and Eviction Regulations for
New York City, and Operational Bulletin 84-1, it is
ORDERED, that the Administrative appeal be, and the same hereby
is granted to the extent of remanding this proceeding to the
Administrator for further processing in accordance with this
order and opinion. The order and determination of the
Administrator remains in full force and effect until a new order
is issued upon remand.
ISSUED:
------------------------
ELLIOT SANDER
Deputy Commissioner
|
